Market Wire: Resilient North American Data Keeps Tightening Expectations Alive, Weighing on Risk Appetites
American households slowed spending last month but the Federal Reserve’s preferred inflation measure exceeded expectations, bolstering the case for continued tightening in 2023. Data released by the Bureau of Economic Analysis this morning showed inflation-adjusted household outlays were unchanged in November, decelerating sharply from the 0.5-percent gain posted in the prior month. Markets had expected a print closer to 0.2 percent. Personal income rose 0.4 percent month-over-month, led by a 0.5-percent increase in private sector wages and salaries. Incomes are 4.7 percent higher relative to the same month last year. The core personal consumption expenditures index – targeted by the...